Wholesaler to Wholesaler question

Hello. I have a question regarding working with another wholesaler. If I'm the wholesaler who is bringing the buyer into the deal, is there some kind of contract which states that the other wholesaler isn't able to take my buyer for future transactions? This buyer is very serious and I put in a lot of time to find this buyer. Does this kind of contract exist? Thank you all.

Edited: 06/26/2010 at 10:15AM

Brian P

Real Estate Investor · Salt Lake C[ty, Utah

228 posts
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Icon_minipost Nov 02 '09, 01:17 AM

Greg

There is no such binding agreement that will allow you to lock up a buyer for the future or prohibit a seller (wholesaler) from doing business with the buyer in the future.

This would be like a Realtor claiming rights to his client for the next umpteen years after a transaction was completed, it isn't going to happen.

Loyalty is one thing, forced loyalty doesn't exist and isn't enforceable. Investors are free game and calling dibs is for the playground.

Edited: 06/26/2010 at 10:20AM

Jeff and Cheray Warner

Real Estate Investor · Grants Pass, Oregon

493 posts
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Icon_minipost Nov 02 '09, 03:02 AM

I agree with Brian. Investors that are actively looking for deals are going to buy from multiple sources anyway. All you can and should be doing is supplying as many deals as you can to him.

Jeff

Edited: 06/26/2010 at 10:20AM

Demos Loizides

Real Estate Investor · Dale City, Virginia

279 posts
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Icon_minipost Nov 02 '09, 10:24 AM

I use flex option to purchase agreements. It at least allows me to market the properties and says how much I will market them for. The other wholesaler knows how much my assignment split will be.

Edited: 06/26/2010 at 10:21AM

Curt Davis

Wholesaler · Memphis, Tennessee

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Icon_minipost Nov 02 '09, 10:28 AM

Greg,

The best way to do this is sign a non circumvent agreement with the person who has the property. It basically states that you are bringing a buyer and the are providing the property and that you will make X% of the sale.

This will protect you from what your worried about.

Edited: 06/26/2010 at 10:21AM

Curt Davis, buyMemphisnow.com
E-Mail: crtdavis@gmail.com
Telephone: 901-881-0552
Website: http://www.buymemphisnow.com
Full Service Real Estate Investing in Memphis TN

Jeff and Cheray Warner

Real Estate Investor · Grants Pass, Oregon

493 posts
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Icon_minipost Nov 02 '09, 10:36 AM

Originally posted by Curt Davis

Greg,

The best way to do this is sign a non circumvent agreement with the person who has the property. It basically states that you are bringing a buyer and the are providing the property and that you will make X% of the sale.

This will protect you from what your worried about.

I don't think he's worried about the % of the deal, sounds like he doesn't want to loose his buyer to another wholesaler to me.

Jeff

Edited: 06/26/2010 at 10:21AM

Joseph Ziolkowski

Inspector · Alsip, Illinois

364 posts
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Icon_minipost Nov 03 '09, 04:03 AM

Does anyone know where I can get a good, enforceable copy of one of those flex-option contract? I am finding myself in the same position now, marketing deals for other wholesalers as a kind of a sideline. I've never used one before, and have never seen one. Any ideas? Thanks!

Edited: 06/26/2010 at 10:22AM

Vanessa J

2 posts
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Icon_minipost Nov 15 '09, 11:54 PM

Hi, I am new to this forum. Yes I will PM you the contract, I got from someone else.

Edited: 06/26/2010 at 10:31AM

Peter Giardini

Real Estate Investor · Baltimore, Maryland

546 posts
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Icon_minipost Nov 16 '09, 12:52 AM

Two things...

1st... if you don't someone stealing your customers... then make sure you are always delivering the highest level of service to them.

2nd... to deliver that high level of service... get out there and find the deals directly and then assign them to your buyers.

If you do these two things and the deals are good deals, you will have a constant stream of investors wanted to purchase from you.

Edited: 06/26/2010 at 10:32AM

Joseph Ziolkowski

Inspector · Alsip, Illinois

364 posts
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Icon_minipost Nov 16 '09, 12:55 AM

Hi Vanessa, welcome! I already got 2 flex option contracts from other folks on the site, but thank you for your offer. Also, if there is anything I can do for you, please feel free to pm me.

Edited: 06/26/2010 at 10:32AM

Peter Giardini

Real Estate Investor · Baltimore, Maryland

546 posts
8080 Influence
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Icon_minipost Nov 16 '09, 04:52 AM

Two things...

1st... if you don't someone stealing your customers... then make sure you are always delivering the highest level of service to them.

2nd... to deliver that high level of service... get out there and find the deals directly and then assign them to your buyers.

If you do these two things and the deals are good deals, you will have a constant stream of investors wanted to purchase from you.

Rodney Dawkins

Real Estate Consultant · Charlotte, North Carolina

65 posts
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Icon_minipost Nov 16 '09, 08:35 AM

The flex option contract sounds like a great idea. Wondering if anyone has a copy that they could send me? Thanks

Edited: 06/26/2010 at 10:32AM

Demos Loizides

Real Estate Investor · Dale City, Virginia

279 posts
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Icon_minipost Nov 23 '09, 06:42 AM

For Rodney Dawkins - I e-mailed you a flex option to purchase agreement shortly after you requested one in your post. Did you ever receive it?

Edited: 06/26/2010 at 10:37AM

R Jenkins joshua

Real Estate Investor · oak creek, Wisconsin

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Icon_minipost Nov 23 '09, 06:49 AM

flex option to purchase agreements -can someone email me a copy also

Thank you, in advance

Regarding Peter Giardini â" get out there

and find the deals directly and

then assign them to your buyers â"

: I have not done a Wholesale deal yet,

but it seems everyone looking to

partner up now a day

Supposedly more quality deals equal

more money (partnering up )

This just my opinion

Edited: 06/26/2010 at 10:37AM

Brian P

Real Estate Investor · Salt Lake C[ty, Utah

228 posts
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Icon_minipost Nov 23 '09, 08:05 AM

Rodney

I've got to ask, how is that name The Rook Group working out for you? In the areas I do business and grew up in to rook someone means to cheat them.

So unless someone was a member of the chess club and doing chess related activity, rook seems like a poor choice. But if it is working well maybe I should change to Scam Realty unless that's already taken..

Jeff and Cheray Warner

Real Estate Investor · Grants Pass, Oregon

493 posts
3980 Influence
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Icon_minipost Nov 23 '09, 12:06 PM

Originally posted by Brian P

Rodney

I've got to ask, how is that name The Rook Group working out for you? In the areas I do business and grew up in to rook someone means to cheat them.

So unless someone was a member of the chess club and doing chess related activity, rook seems like a poor choice. But if it is working well maybe I should change to Scam Realty unless that's already taken..

I don't see any good to come from this comment. What do you care what he names his business?? Ever think that the name may have a different meaning to him?

Lets stick to discussing Real Estate and avoid insulting people, sound good?

Jeff

Rodney Dawkins

Real Estate Consultant · Charlotte, North Carolina

65 posts
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Icon_minipost Nov 25 '09, 04:46 AM

To DemosL - Thanks I have received the flex option contract that you sent me. Thanks so much this should be very useful. If there's ever anything I can help with please let me know.

Rodney Dawkins

Edited: 06/26/2010 at 10:38AM

Demos Loizides

Real Estate Investor · Dale City, Virginia

279 posts
1562 Influence
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Icon_minipost Nov 26 '09, 10:48 AM

Rodney - I first received it from another investor. Just do the same and pass it along to people that need one.

Good luck with it.

Edited: 06/26/2010 at 10:39AM